It's TIME to start using social media for your business

Another survey came out this week talking about business owners not using social media as a marketing tool. The survey shows that more than 47% of small business owners are NOT using social media in their regular marketing efforts. (Hiscox Insurance) The number one reason why: Business owners suggest that they don't see the payoff for the time and energy they invest.

At CBCG, we couldn't disagree more. If we met to discuss marketing for your business, I'm sure we would probably both agree that the goal of marketing for any business - large or small - is to connect with customers and share insights and information about the business. The key to successful marketing is to deliver the message in the right forum where your customers will read it.

If that premise holds true, then I suggest that there-in lies the opportunity for small businesses to use social media as a marketing tool. If your customers are spending time on Facebook, or watching videos on YouTube or Tweeting on Twitter, than you should be there marketing your business and engaging with them WHERE THEY ARE.

Reaching customers today is no different than when you marketed your business 20 years ago. You used the newspaper, put ads on the radio or put an ad in the yellow pages to share because that's where your customers were. The difference today is that some small business owners are not as comfortable using social media as a marketing tool because they know less about it or feel behind the curve when it comes to adoption of social media practices.

That uncomfortable feeling is limiting your success at connecting with customers and driving sales for your business. I promise, the tools are not that hard to figure out and once you decide to jump in, there are many resources available to you to help you create a message using social media that will reach your customers effectively.

The time to start using social media for your business is NOW. Your customers already are.

Making Your Retail Business Social in 2012

People around the world are using social media for many reasons. They are meeting long lost relatives or high school classmates on social media sites, watching videos, reading blogs and most importantly for retailers, they are using social media to connect with brands they know and love.

And the numbers show no sign of slowing down any time soon. By the end 2011— more than 63% of Internet users will be using social media. (148 million people) and the number will climb to 67% by the year 2013. (Source: emarketer.com) That’s a lot of people spending a lot of time with social media to do a lot of things.

And while some retailers are just getting started in using social media for their businesses, the industry is steam rolling ahead at warp speed. New social media sites are being created every day and the ways consumers use social media continues to evolve. So the question is - How is social media evolving and how will retailers be able to use it for their retail businesses in the coming year?

Here we present 5 emerging trends in social media. Many of them will be perfect for retailers like you as they seek to engage and share word of mouth experiences with customers in real time across a broad group of users. When you read them, don’t think about where you are with social media today, think about where your business could be if you integrated some of these tools in the coming year.

Consumer content creation—It’s all about being in the stream. Yes, you need to have an engaging presence with social media on your own that inspires people to come back on a regular basis. Now taking it to the next level and getting your brand evangelists and social media community members to talk about your business in their posts will be critical.

Think of it as PR and word of mouth marketing from your best customers. You will need to create programs that inspire them to share what you are doing in their social media posts. When your customers create the content for your business, it's the perfect word of mouth referral- except that it’s on line and a lot more eyes will be on the message!

Niche Location—Niche location social media sites target the exact location of the user and tells others about it. This has a great connotation for retailers who can use location based sites like Foursquare or Gowalla to run contests or make offers to customers who check in when they shop.

Its like getting free advertising for your store in real time, from people who are shopping at that moment! Customerse check in and get discounts, etc and then their friends see on line that they are shopping in your store and may be intrigued to come in and get the same deal. If you want to see how some brands have implemented location based marketing programs, take a look at what Ann Taylor, McDonalds, Starbucks and Best Buy have already done in this area.

Group Purchasing—This trend continues to grow and will expand with more sites in 2012. Simply put, group purchasing is based on the premise that creating a sense of urgency around purchasing will incentivize users to act quickly and to share the information with friends in their circle to insure the deal happens.

For retailers, it’s a great way to get a tremendous amount of marketing impressions for your brand that you could never afford on your own. And while the group purchasing sites take a percentage of the sales generated from the deal (and yes, there is some profit erosion on this first deal and customer transaction), the goal for using a GP site will be to create a longer term relationship with the customer over time to recoup your profit.

Using group purchasing sites like Groupon or Living social or Daily Deals has become a hotbed topic for retailers because they are concerned these sites don’t attract the right type of customers that can be retained long-term. I would suggest that the key to successful group purchasing participation is how you structure the deal and how you prepare in advance to create a process for you to capture contact information from the customers as well as create marketing programs to speak to them after the Groupon is over.

Social Gaming - In 2012 more game applications will be integrated in to social media programs to further engage customers with brands in a fun way. More than 56 million people currently play games with social media on a regular basis and brands that connect with customers while they are using the game platforms are poised to form a meaningful connection with them going forward.

Mobile Marketing - More than 50% of all cell phones will be smart phones in 2012. Consumers understand the time saving benefits that a smart phone can deliver and the social media trends for 2012 call for more mobile marketing programs from brands to connect with customers where they are. Discount codes coming thru phones, interactions with products while in store and QR codes offering information, games and other relevant services will further engage customers with brands and stores in 2012.

Whatever trend you think is right for your business, one thing is certain. Social Media is the way of the future for retailers to connect with customers. Just like creating a website was important 10 years ago and email marketing they way to connect with customers 5 years ago, social media is a trend that is here to stay.

Social media is and will continue to be a way of connecting with customers for your store and if you plan on being in business in 10 years – you must continue (or start!) to integrate these new social media tools into your marketing plans today.

Are you ready to be part of the Group?

I’ve heard lots of dialogue (on both sides of the fence) about Group Buying Sites (e.g. Groupon, LivingSocial, PlumDistrict and BuyWithMe) and how they have negatively impacted small businesses. In fact, I’ve even heard a few stories about how they put small businesses out of business!

These stories include businesses who were overwhelmed by new customers, saw unplanned spikes in demand and businesses where group buying sites created surges in website traffic and need for increased cash flow to manage inventory capacity builds. On the surface, this might lead you to say that group purchase sites are not good for small business. This is one place where I completely disagree!

I'd like to suggest that in fact, it's not the group buying sites fault for delivering "too many customers" to a store that participates, but in fact, it is the unprepared small business owner who has created what I believe are problems that can be easily prepared for.

Oprah Effect
Think of the impact that product endorsements from the Oprah Winfrey show had on small businesses. Many a lucrative business was catapulted from the dark corners of mediocrity to the bright lights of notoriety by being endorsed by Oprah on her show. How did they ever survive? How dare Oprah promote their products…did she not know she could put them out of business?

In fact, most (if not all) of the businesses featured on Oprah had time to prepare for the impact that the show would provide. The benefit of this proper planning in advance created the positive opportunity that the Oprah effect delivered.

Be Careful What You Ask For!
Any promotion deployed in isolation without regard for the effects on business operations is a disaster waiting to happen. A small business owner must take into consideration the ramifications of a Group Buying Site promotion on all aspects of the business. The financial impact of the Group Buying Site’s offer on gross profits can be easily measured, but the potential investments required in other operational aspects (IT and IS upgrades, staffing, training, inventory management, onsite customer logistics, cash flow requirements, customer relationship management programs) are more difficult to predict. All must be carefully evaluated and considered BEFORE entering into an agreement with a Group Buying Site. Strategic preparation is critical to maximize the potential success of the promotion and mitigating potential risks to your business.

Long Term Value of the Customer

A key element of many of these Group Buying Site promotions is the immediate discount on the initial transaction. If the small business owner views this opportunity as a chance to drive one-time transactions, they are doomed to failure. The key is to consider the long term value of the customer; the promotion expense is merely the customer acquisition cost. If the new customer can be converted from a one-time discounted transaction to a regular consistent customer, then the true monetization potential of the promotion is acheived. All said and done, the small business owner may initially only break even on the Group Buying Site promotion, but they have been presented with a glorious opportunity to drive future sales and profit growth through customer retention.

Think long term and you have a chance for success. Deliver a great customer experience and you have a better chance for success. PREPARE with a focus on the long term and you will succeed.

Is your retail business social?

Today’s retail consumers are using social media in record numbers to engage daily with products and services they like. They are learning about features and benefits of brands, they are learning about brand personality thru contests and activities online and they are sharing testimonial information about brands they love with their online friends and family.

All this social media activity is great news for retailers who understand that they can now engage customers (existing and new) via their social media sites on a daily basis. In fact, today’s best in class retailers are now meeting consumers where they are by re-aligning their marketing methods and creating social media strategies that engage, inform and inspire their customers to participate.

So what steps must you make in order to make your retail business more effective with social media marketing today?

1. Strategy first. With social media, it is not a case of “if you build it, they will come.” With social media, you must begin with a strategy that defines your company goals and outcomes for using social media. Ironically, the social media tools are not complex it’s the development of a strategy and finding time to commit to it that sinks many companies starting out.

2. Abolish the fear of transparency. As you seek to engage your customers in your social media activities, you will no doubt receive some critical reviews of your brand. Do not hide behind your cyber walls. Acknowledge your failings in the public forum and try to right the wrongs as best you can.

3. Stand out from the crowd. Yes, you must have a strategy, but don’t forget, we’re talking about marketing here so you must create activities with your social media marketing that create differentiation among your peers and help your customers see the value in your company and brand.

4. Givers gain. Companies must learn that using social media isn’t just about constantly selling your brand. They must learn to have a shared communication with customers and give information that your customers find useful. Think about social media like a cocktail party- if you listen to someone constantly talk about themselves, you are looking for the exits in a hurry, but if they engage in a two way conversation with you, it’s much more interesting and potentially rewarding.

5. Abide by the 40/30/30 rule. Spend 40% of your posts talking about personal matters, 30% of the time sharing store or industry information that your customers would appreciate and THEN- and ONLY then, should you spend 30% of your time directly selling products your store carries. Maintaining this rule will help you build credibility and trust for your brand with your customers.

6. Create Value - it matters to your customers. Make sure you use social media to help your company showcase the value in your brand. It’s not just being there that matters, it’s about delivering value in the eyes of your customers on a consistent basis that separates you from your competitors on a consistent basis.

There is no doubt that using social media can be an effective tool for connecting with consumers of all ages. I know that finding the time to execute social media may be challenging at first, but when you make it a regular part of your marketing program, you will see what a wonderful tool it can be for your business to meet and market to customers on a 24/7 basis!